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Alex's Company books showed a cash balance of $5,072 at the end of March. Its bank statement for the end of March showed $8.229. The
Alex's Company books showed a cash balance of $5,072 at the end of March. Its bank statement for the end of March
showed $8.229. The following checks and receipts were recorded by the Company for the month of March 2022:
1. The bank collected a customer's note of $2,300, with interest of $110.
2. The bank returned a NSF check from a customer for $675.
3. The bank statement showed a service charge of $45.
4. Check no. 21 was correctly written and paid for $423. However, when the check was
posted to the cash T account, the accountant posted it as a debit to Accounts Payable and
credit to Cash for $243.
5. All outstanding checks and deposits in transit from February were cleared in March.
a) What is the correct Cash balance per books after reconciling the March bank statement?
b) Provide the journal entries required based on the March bank reconciliation. Omit journal entry descriptions.
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